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What is cloud accounting?

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Posted: September 15th, 2015

Cloud computing has become a common term over the last few years and many software developers now provide cloud-based services. But what is the cloud, and how can cloud accounting software benefit your business?

‘The cloud’ is simply another term for ‘the internet’. Cloud computing refers to the practice of accessing or storing data and programs over the internet instead of using your hard drive or office server. Cloud accounting software is software that can be accessed online.

Some issues that users who don’t use cloud software face, such as limitations on the number of devices/users that can run the software, are eliminated by using cloud accounting software. For example, data backups and software upgrades are carried out automatically which saves you the laborious job of performing these tasks manually. In addition, data security is enhanced meaning you no longer have to worry about a laptop or hard drive falling into the wrong hands as the data is stored remotely and can only be accessed with the correct passwords. It also means that incidents such as fires or floods no longer carry the risk of permanent destruction of client data.

In terms of software access, cloud accounting companies provide a number of options giving business owners greater opportunity to enhance teamwork and collaboration without compromising control. Many companies provide flexible price plans which allow businesses to scale their accounting function according to their needs and budget.

Perhaps the most significant advantage of cloud accounting is that it allows businesses to access their data and software from any device with an internet connection 24/7. Small business owners can therefore stay connected to their data and accountants from almost anywhere, providing greater control and peace of mind.

The cloud packages on offer also help allow us as your accountant to support you further. Many cloud accounting packages, including Sage and Xero, allow a type of accountants access to your information which enables us to log in and review any data we may need to complete your business’ accounts.

The top three benefits to your business:

clear, real-time overview of your current financial situation

no installation necessary and updates are automatic, allowing for more time to be spent on more important work

everything is backed up automatically, and your data is more secure

Our Business Software Specialists are able to advise you in the best type of cloud accounting software for your business and as Sage and Xero Partners we can help you not only source the best package for your business, but also offer continued user support. Contact us today to see how easy it is to move your accounts to the cloud.